Key Market Trends to Monitor This Week (27-31, January 2025)
Australian Dollar Declines on Tariff Fears?
The Australian Dollar weakened following mixed Chinese PMI data and increased risk aversion due to Trump’s proposed tariffs on Colombia, Mexico, and Canada. Despite China's stimulus efforts, the AUD/USD pair ended its three-day winning streak as the USD strengthened amidst uncertainty over US trade policies. The DXY rebounded from monthly lows, and expectations for an ECB rate cut added further pressure on the AUD, highlighting the interconnectedness of global economic sentiments.?
Gold Prices Retreat Amid USD Recovery?
Gold prices fell as the USD strengthened, retreating from last week's multi-month high of around $2,786. The decline is attributed to renewed trade war fears following Trump’s tariffs on Colombia, alongside expectations of Federal Reserve rate cuts. While selling pressure increased, potential dip-buying near $2,736 could limit further losses. Analysts are watching upcoming US economic data for market direction, as the outlook remains cautiously optimistic for gold amid a supportive fundamental backdrop.?
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Yen Loses Ground, USD/JPY Near 156.00?
The Japanese Yen gave up gains against the USD, with the USD/JPY pair climbing back to the 156.00 level. Despite the Bank of Japan's hawkish stance and narrowing yield differentials favoring the Yen, a modest recovery in the USD and renewed trade war fears limited JPY strength. Trump's tariffs on Colombia added to market uncertainty, while upcoming US economic data could influence future movements.?
EUR/USD Drops Below 1.0500 as USD Strengthens?
The EUR/USD pair fell to around 1.0480 as the US Dollar Index rebounded from its monthly low of 107.22. The Dollar gained support amid uncertainty regarding Trump's policies and mixed US PMI data. While the Euro saw some support from improved Eurozone PMI figures, it remains under pressure due to expectations of a 25-basis point cut in the ECB's Deposit Facility rate. The overall sentiment reflects cautious outlooks on both sides of the Atlantic.? Register Now!